Joe is spinning a wheel with 4 unequal spaces marked with values of $200, $300, $400, and $600. The probability of landing on $200 is 2/9. The probability of landing on $300 is 4/9. The probability of landing on $400 is 2/9. The probability of landing on $600 is 1/9. The expected value of spinning the wheel once is $__, and the expected value of spinning the wheel three times is $__.
The idea of expected value is to find the "average" value that you'll earn each spin. This is done using the following formula: Expected Value = (chance of outcome #1)*(value of outcome #1) + (chance of outcome #2)*(value of outcome #2) + ... and so on.
So, in our case: outcome 1 = $200 outcome 2 = $300 outcome 3 = $400 outcome 4 = $600
would i multiply by three after doing that to find the 2nd expected value?
That would make the most sense to me. I'll double check online. :)
ok thanks
Yes, that is how you would do it. The expected value is "linear" (which basically means you can multiple answers like you would do naturally).
Thank you!!!
Your welcome!
Join our real-time social learning platform and learn together with your friends!